In a major setback for Elon Musk Tesla has shuttered its Dojo supercomputer unit reportedly after Ganesh Venkataramanan an Indian-origin former Tesla executive left the company and co-founded AI startup DestinyAI along with other former top executives who quit Musks auto firm. Why Elon Musk shut down Tesla Dojo? According to a Bloomberg report Tesla is dissolving the team that was tasked with developing its Dojo supercomputer after several top executives who worked on the project left the company and flocked to DestinyAI-- an AI startup co-founded by former Tesla Dojo head honchos-- Ganesh Venkataramanan Bill Chang and Ben Floering. As per the report Teslas Dojo head Peter Bannon has also left the company and is likely to join Venkataramans DestinyAI. Earlier this month Tesla took a major hit when around 20 members of its Dojo team left the company to establish DensityAI an AI startup “focused on data center services for industries from automotive to robotics.” Following the mass exodus Tesla shifted the remaining Dojo employees to other areas within the company Bloomberg reported. What did Tesla Dojo do? First introduced by Tesla CEO Elon Musk in 2019 the Dojo was described as a “super powerful training computer” which would be capable of training AI chips by processing huge amounts of vehicle video data. These AI chips would be then used to power Teslas patented Autopilot technology that are installed in its self-driving cars. At the time Teslas Dojo was touted as the next big thing by market analysts and was predicted to give the company a major lead in the sector with Morgan Stanley estimating in 2023 that the project would increase the market cap of the Elon Musk-led automaker by a whopping $500 billion. How Tesla plans to proceed? However after the recent turn of events Tesla is planning to partner with chipmaking giants Nvidia and AMD for computing power while a deal with Samsung is in the pipeline for chip manufacturing. It is not right for Tesla to spend its resources on two different AI chip designs. Tesla AI5 AI6 and subsequent chips will be very good for inference and also for training Elon Musk wrote on X hinting that Tesla will now focus on AI chips that can run AI ​​systems used in cars with more precision and accuracy. Notably Tesla has witnessed declining sales in recent times due to increased competition and Elon Musks political affiliations.